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Employment

The U.S. Bureau of Labor Statistics reported that aggregate state and local government employment increased by an estimated 51,000 jobs from April to May 2026. Over the last 12 months state governments have lost an estimated 48,000 jobs and local governments have added 142,000 jobs. The aggregate level of state and local employment has exceeded its previous February 2020 peak by 710,000 jobs.

The BLS identifies approximately 20.7 million employees of state and local government as of May 2026. Local governments, which include most school districts, account for nearly three-quarters of total state and local employment, with state governments accounting for around one-quarter of the total. Overall, state and local employment accounts for approximately 13 percent of the nation's workforce.

The private sector added an estimated 120,000 jobs in May 2026.

The charts below present the relative changes in state and local government and private sector employment since 2007.

Monthly changes in state and local government
and private sector employment, 2007-2026

Monthly changes in state and local government employment, 2007-2026

Compiled by NASRA based on data provided by the U.S. Bureau of Labor Statistics. Data is sourced from the BLS Current Employment Statistics program, which is a monthly survey of households, businesses, and governments measuring employment, hours, and earnings estimates. The CES survey reference period is the pay period that includes the 12th day of the month. Data are published on a preliminary basis and revised twice before being finalized. 

See more: https://www.bls.gov/ces/


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.

What's New at NASRA: Government Spending Issue Brief

NASRA’s March 2026 update on government spending makes a basic but important point: public pension benefits are not paid out of a government’s day-to-day operating budget. They are paid from trust funds that employees and employers contribute to during an employee’s working years. Those trusts distribute more than $400 billion each year to retirees and beneficiaries in communities across the country. On a national basis, employer contributions to pension trusts in FY 2023 equaled 5.16 percent of direct general spending by state and local governments, which shows that pension contributions remain a limited share of overall public spending even though the level varies from one state to another. 
The brief also shows that pension costs should be viewed in the context of the changes governments have made over the past 15 years to strengthen plan funding. Following the 2008–09 market decline, nearly every state and many local governments adjusted contributions, benefits, or both to improve pension sustainability. More recent data show that employer contributions increased from FY 2022 to FY 2023, but pension spending as a share of total government spending remained broadly stable. The updated brief provides FY 2023 figures and also projects the aggregate pension spending rate for FY 2024, offering a useful snapshot of both current costs and the longer funding trend.